EM Facts

What’s Wrong with Emergency Management?

1. It is unconstitutional! Emergency Managers (EM) function as dictators.
They can write up new laws, sell city property, cancel labor contracts, and overrule all elected leaders including city council and the mayor. This law was passed against the will of the people, in a sneaky fashion, signed into law the day after Christmas.
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Click here to read PA436 which authorizes emergency managers.

2. Over 50% of the Michigan’s African-American population is under EM rule.
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3. EMs don’t work!
Highland Park has been under state-appointed emergency control since 2002, and are still in financial distress.

4. EMs don’t go away!
Even though Pontiac is no longer considered in financial crisis- the EM appointed a “city administrator” (with all the powers of an EM) continuing to deny the people a right to elect their leaders and govern themselves.
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5. EMs have no accountability!
They only answer to the governor. No one else. Detroit EM Kevyn Orr hired his own company, Jones Day to declare the city bankrupt, and has already paid them and other consultants over $60 million to do so.
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How will Detroit’s bankruptcy (led by the EM) affect me?

1. Less jobs, no benefits, no unions
In Pontiac nothing is owned by the city anymore- everything has been outsourced to private companies, and they have laid off over 90% of city workers.
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2. Increased taxes
In Benton Harbor, the state’s poorest city, after three years of emergency management – the city will now impose additional income tax on its 10,000 residents.

3. Increased utility rates
EMs often create quasi-authorities to side step state law on utility rate increases.
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4. Increased racial profiling and police brutality.
EM Orr has hired the Manhattan Institute to advise the Detroit police department on the vicious (and now ruled unconstitutional) racial profiling policy known as “stop-and-frisk.”
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5. Less public space.
EM’s often take public spaces and take them out of city ownership. See for example what happened in Benton Harbor (need link)
Click here to see an example of a plan for Belle Isle that definitely does not include residents of Detroit.

6. Increased risk of defaulting on high-risk loans
In the case of Detroit, the EM is attempting to restructure the city’s debt created by banks pushing toxic loans onto municipalities. While using the city’s assets as collateral and simultaneously furloughing city employees and privatizing services, the EM places taxpayers, retirees, business and property owners at risk at defaulting on these loans.
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7. Less bus routes, drivers, mechanics and buses and increased rates and wait times
In the case of Detroit, the EM is attempting to restructure the city’s debt to pay off its creditors prior to any city services. That means that less money will be available for essential city services like transit. When management of Detroit’s bus transit system was awarded to Envisurage, it immediately consolidated bus routes, ceased service for third shift employees, laid off mechanics that were needed to fix buses and keep them on the road and increased rates by a quarter. With buses filled to capacity, drivers and passengers safety is placed further at risk.
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Where are the resources actually going?
If we are so bankrupt, why did the state approve over 450 million of tax dollars for a new hockey stadium?
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